''No-guns'' Fifth Third bank earnings down 60%; competitors' up

The Dayton Daily News is reporting that Fifth Third Bancorp (NasdaqNM: FITB) experienced a 60 percent drop in fourth-quarter earnings. The DDN notes the announcement came the same day two other Ohio banks posted quarterly gains.

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The Cincinnati-based bank holding company announced that fourth-quarter net income was $176 million, or 31 cents per diluted share, compared to $442 million, or 77 cents per diluted share, for the same period in 2003.

For the full year, the paper notes, earnings per share were $2.68, a 7 percent decline over last year's earnings of $2.87 per share.

Robberies at Fifth Third branches have filled the headlines in 2004, after the bank posted signs ordering customers with Ohio Concealed Handgun Licenses (CHLs) to stay away when armed.

(The photo at right, which appeared on the front page of the Willoughby News Herald in June, depicts a law enforcement agent dusting for fingerprints next to a "no-guns" sign at a Fifth Third bank.)

Another Ohio financial holding company, National City Corp. (NYSE: NCC) of Cleveland, reported fourth-quarter net income was $960 million, or $1.46 per share, up from $544 million, or 88 cents per share, in 2003.

For the year, notes the DDN, it reported a net income of $2.8 billion, or $4.31 per share, compared to $2.1 billion, or $3.43, per diluted share for 2003.

After briefly considering posting discriminatory signs banning CHL-holders, National City listened to the concerns of its customers, and has not posted the signs.

In the wake of the shooting death of Officer Bryan Hurst in a robbery at a Columbus Fifth Third branch, the company has been responding to customer complaints with a growing list of desperate excuses. Click on the "Read More..." link below for more.

Before the death of Officer Hurst, Fifth Third has consistently offered one explanation for their discriminatory signs, saying in auto-response emails that the company posts these signs "to limit the anxiety and concerns of the majority of our customers".

But as the list of violent robberies at "no-guns" Fifth Third banks grows, there appears to be much more reason for anxiety and concerns about entering banks which advertise to criminals that customers are defenseless.

The company appears to be reacting to the appearance of such callous disregard for its customers, offering new excuses for their discriminatory policy in a new round of emails to customers. This time, the bank is insulting the intelligence of its customers by insinuating that they post in order to comply with state or federal law.

----- Original Message -----
From: Pennington, Douglas
To: Customers who write about the loss of Officer Hurst
Sent: Monday, January 17, 2005
Subject: Concealed Weapons

Thank you for contacting Fifth Third Bank. We have reviewed your email
concerning the shooting at one of our Columbus Branches. We are deeply
saddened by the loss of Officer Bryan Hurst. Our thoughts and prayers go out
to his family. We are also very concerned for the welfare of our customers
and employees. Sometime we are unable to completely comply with our
customers request based on Federal or State Laws. We are required to comply
with the letter and spirit of the law. In conjunction with this we invest
thousands of dollars annually to protect our banking centers, and we partner
with the local law enforcement agencies here in Ohio as well as throughout
our eight-state region to operate in as safe and secure a method as
possible. I appreciate your concern as well as your business. Should you
have any other questions please contact Mark Parker at [email protected].

Sincerely,

Doug Pennington
Customer Service Manager
Ph. 513-358-0543
Fax 513-358-6020

Customers have quickly seen through this new dishonest excuse, and are letting the bank know. One such reply is shown below:

To: Pennington, Douglas
From: Concerned customer
Sent: Tuesday, January 18, 2005
Subject: Concealed Weapons

Mr. Pennington -

Your e-mail in no way answered my concerns. The law has NOTHING to do with
your corporate decision to render myself and your employees defenseless.
That decision is yours. I just read where 2 more of your banks were
robbed..do you think maybe the criminals have figured out that you and your
employees and customers are totally defenseless due to your policies?
Do the research and you will see that establishments that ban CCW are being
targeted at a higher rate than non posted areas. ALSO, you will not find an
incident involving a legally carried firearm in a bank in this or any other
state. The reasoning behind your policy simply does not hold up to the
facts. I look forward to hearing more from you as I would enjoy a phone
discussion on this matter if you have the time.
THANKS for your reply and I look forward to further correspondence.

Confronted with a knowledgable customer, this Fifth Third CSR reverts to the original excuse:

From: Pennington, Douglas
To: Concerned customer
Sent: Tuesday, January 18, 2005
Subject: Concealed Weapons

Thank you for your email. In reference to your inquiry, Ohio state laws
allow Fifth Third Bank to post the signs in Ohio. Fifth Third Bank has made
this decision to create a safer environment for our employees as well as our
customers. While I am impressed with the knowledge you have on this
subject, a "shoot-out" in a Bank, is the last thing a Bank wants. Again, In
conjunction with this we invest thousands of dollars annually to protect our
banking centers, and we partner with the local law enforcement agencies to
operate in as safe and secure a method as possible.

Be aware, however, the absence of a sign is NOT an indication that a
concealed handgun is permitted on the premises. A good rule of thumb is to
notice the presence of metal detectors and/or security guards who can advise
you of the property's policy.

Sincerely,

Doug Pennington
Customer Service Manager
Ph. 513-358-0543
Fax 513-358-6020

Yet again, the facts shine through the spin, as was demonstrated in this customers' reply:

To: Pennington, Douglas
From: Concerned customer
Sent: Tuesday, January 18, 2005
Subject: Concealed Weapons

AGAIN Mr. Pennington, the facts do not back up your reasoning. There have
been NO shootouts in banks which allow CCW, in ohio or any other states.
What is occuring however is the establishments that ban CCW are being
targeted for robbery AT GUNPOINT. If you would look at the situation through
the eyes of a criminal for just one second you would understand that a place
that bans guns carried by LAW-ABIDING CITIZENS, is a MUCH more inviting
target than an establishment that MIGHT have an armed person TRAINED IN THE
PROPER RESPONSE. You see the guns themselves aren't the deterrent, but the
idea that there MIGHT be resistance is what would deter me IF I were a
criminal. I appreciate your position, but as I have said the facts simply do
not back it up. Do you find it a bit ironic that your posted banks are being robbed on a fairly regular basis right now, and being robbed at gunpoint? You see, the only thing that your policy does is disarm law-abiding citizens, and instead of creating a safer environment for your employees and customers it is doing exactly the opposite.

As I said earlier, I appreciate you taking then time to correspond with me
concerning this, and keeping it a civil discussion. I think your intentions
are good, but founded on fear rather than the actual facts. PLEASE do the
research, and you will see that I am right.

OH YES, one more thing. You are
correct, OHIO law does allow you to post your banks, but it ALSO allows you
to NOT post your banks. The choice is yours, and the law backs you whichever
decision you make. You retain NO legal liability in either case.

Thanks again for your time.

Another OFCC supporter took Pennington's advice, and contacted Mark Parker at [email protected]. After recieving the same "Federal and State Laws" excuse from Parker, the customer responded as follows:

-----Original Message-----
From: Another concerned customer
Sent: Monday, January 17, 2005
To: [email protected]
Subject: hand guns in your business

Thank you for your reply to my e-mail concerning guns in banks. your reply made it appear as though you were complying with state and federal law in refusing to allow licensed to carry customers to protect themselves in your establishment. But nothing could be farther from the truth. You any you alone, determine in Ohio whether or not to allow licensed concealed carry in your banks. It is a shame that you have taken such an anti-gun stand.

I feel strongly that business that ban guns have a more sinister agenda in mind, such as dong away with the Second Amendment and to remove all guns from society, such as they have been able to do in England, Australia, Canada and many other countries whose crime rate has skyrocketed as a result. I and my like minded fellow Americans find it extremely offensive to us.
We are all law abiding, background checked trained and licensed to carry, so we can only assume that you no longer want or need our business and will take that insult into account when we are looking for a bank.

Mr. Parker's response suggests he is unconcerned with the fact that his company's earnings dropped 60% since it began turning away CHL-holders and advertising to criminals that their businesses are defenseless, and oblivious to the fact that no matter what his signs say, criminals are ensuring that his banks are NOT gun-free.

----- Original Message -----
From: Mark Parker
To: Another concerned customer
Sent: Tuesday, January 18, 2005
Subject: RE: hand guns in your business

I think the Bank very much needs your business, and would very much like to keep you banking with Fifth Third. However, the majority of our customers do not share your want or need to carry a firearm into the Banking Centers. Fifth Third researched and considered this decision very carefully. We continue to work with the public to ensure our employee’s and customers safety. I think it should be very clear as to why we would not allow anyone to carry a firearm into a bank. Yes, you are correct we as a Bank we have made this our policy. Though it may not be popular with all of our customers, it is what we feel is best to protect everyone. I am disappointed if you feel you can no longer bank with Fifth Third, but we will respect your decision and hope you find something that suits your needs.

Sincerely,
Mark Parker

Fifth Third accepts customer feedback on its website, or by phone at 1-800-972-3030.

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